Japan Trio’s JV to Be Named Ocean Network Express
- Business & Finance
Japan’s big three container shipping companies informed that their new joint venture (JV) will operate under the tradename “Ocean Network Express”.
Establishment of a holding company between Kawasaki Kisen Kaisha (K Line), Mitsui O.S.K. Lines (MOL), and Nippon Yusen Kabushiki Kaisha (NYK Line) is currently planned in Japan, and an operating company is planned to be incorporated in Singapore.
In addition, regional headquarters of the operating company will be set up in Singapore, Hong Kong, United Kingdom (London), United States (Richmond, VA), and Brazil (Sao Paulo).
“The move will allow Ocean Network Express to better meet customers’ needs by providing high-quality, competitive services through the consolidation and enhancement of the three companies’ global network and service structures,” K Line said.
The trio agreed to establish the JV, which will integrate the three companies’ container shipping businesses, including worldwide terminal operation businesses, excluding those in Japan, in October 2016.
The establishment of new JV will officially be announced once all anti-trust reviews are completed. In mid-March 2017, the proposed joint venture received an approval from the Competition Commission of Singapore (CCS).
The parties earlier said that the new joint-venture company would operate a fleet totaling 1.4 million TEUs, placing the new company as sixth in the market with approximately 7% of global share.
K Line and MOL, which will each hold 31 percent, and their compatriot NYK Line, which will hold the remaining 38 percent, plan to establish the new joint-venture company on July 1, 2017, while business commencement is expected to start as of April 1, 2018.